BILL NUMBER: SB 1765	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Kuehl
   (Coauthors: Senators Migden and Steinberg)
   (Coauthors: Assembly Members Ma and Swanson)

                        FEBRUARY 22, 2008

   An act to add Section 17048.7 to the Business and Professions
Code, relating to business.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1765, as introduced, Kuehl. Motion picture, television, and
radio contracts: third-party rights.
   Existing provisions of the Unfair Practices Act prohibit any
person engaged in business within this state from selling any article
or product at less than the cost thereof, for the purpose of
injuring competitors or destroying competition. Under existing law,
any contract made in violation of the act is an illegal contract, and
a person violating the act is guilty of a misdemeanor and subject to
specified criminal penalties and civil liability.
   This bill would additionally prohibit the holder of rights in a
motion picture, television program or series, or radio program from
selling or licensing those rights for less than their fair market
value, as defined, where a third party is entitled to receive payment
based on the proceeds from the sale or licensure.
   Because a violation of the bill's provisions would be a crime, it
would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17048.7 is added to the Business and
Professions Code, to read:
   17048.7.  (a) It is unlawful for the holder of rights in a motion
picture, television program or series, or radio program to sell or
license those rights for less than their fair market value where a
third party, including, but not limited to, an actor, writer,
director, producer, musician, composer, or health and welfare or
pension trust fund, is entitled to receive payment based, in whole or
in part, on the proceeds from the sale or license.
   (b) For purposes of this section, "fair market value" means the
most likely price that the assets being sold would bring in a
competitive and open market under all conditions requisite to a fair
sale, the buyer and seller acting prudently, knowledgeably, and in
their own best interest, and a reasonable time being allowed for
exposure in the open market.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
      ____ CORRECTIONS  Heading--Authors.
                                  ____